Condo project revived

Developer moves forward, sues town over zoning change

Updated 8:07 am, Wednesday, March 20, 2013

A view of the construction site where the Loudon Heights apartments are being constructed on Tuesday, March 19, 2013 in Colonie, NY. (Paul Buckowski / Times Union)

A view of the construction site where the Loudon Heights apartments are being constructed on Tuesday, March 19, 2013 in Colonie, NY. (Paul Buckowski / Times Union)

Photo: Paul Buckowski

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A view of the construction site where the Loudon Heights apartments are being constructed on Tuesday, March 19, 2013 in Colonie, NY. (Paul Buckowski / Times Union)

A view of the construction site where the Loudon Heights apartments are being constructed on Tuesday, March 19, 2013 in Colonie, NY. (Paul Buckowski / Times Union)

Photo: Paul Buckowski

Image 3 of 5

A view of the construction site where the Loudon Heights apartments are being constructed on Tuesday, March 19, 2013 in Colonie, NY. (Paul Buckowski / Times Union)

A view of the construction site where the Loudon Heights apartments are being constructed on Tuesday, March 19, 2013 in Colonie, NY. (Paul Buckowski / Times Union)

Photo: Paul Buckowski

Image 4 of 5

A view of the construction site where the Loudon Heights apartments are being constructed on Tuesday, March 19, 2013 in Colonie, NY. (Paul Buckowski / Times Union)

A view of the construction site where the Loudon Heights apartments are being constructed on Tuesday, March 19, 2013 in Colonie, NY. (Paul Buckowski / Times Union)

Photo: Paul Buckowski

Image 5 of 5

A view of the construction site where the Loudon Heights apartments are being constructed on Tuesday, March 19, 2013 in Colonie, NY. (Paul Buckowski / Times Union)

A view of the construction site where the Loudon Heights apartments are being constructed on Tuesday, March 19, 2013 in Colonie, NY. (Paul Buckowski / Times Union)

Photo: Paul Buckowski

Condo project revived

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Colonie

The long-dormant project to build condominiums in Loudonville is being revived again, even as the developer sues the town for changing the zoning on the project.

The plan is to create 24 condominiums in a building modeled after George Washington's Mount Vernon. Much of the parking is being built underground. For more than three years, the elevator shaft and foundation stood on the site untouched, with neighbors calling the site "Stonehenge." The property once was home to Eamonn's Loudon House, a historic pub destroyed by fire.

In July, the Town Board rescinded the zoning on the site, giving developer Mike Benson 18 months to make significant progress or lose his approval. In 2007, the previous Town Board had changed the zoning from single-family residential to planned development district, or PDD.

Benson has sued the town in state Supreme Court in Albany County, saying the decision to reverse the zoning was illegal.

"We believe that the town improperly rescinded the PDD approval for the project," said his attorney, Mary Elizabeth Slevin. "Because of that, the PDD approval should be reinstated."

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Benson is committed to finishing the project, she said, but the change in zoning has made it harder to get financing. With the chance of approval being revoked, she said, banks are more reluctant to loan their money.

"Although my client is able to build, it makes it much more difficult and much more expensive," she said.

Benson and his firm, BCI Development, are paying for the work being done now, Slevin said. Benson told the Town Board last year he and his business partner had $3.2 million invested in the project and would need $6 million more to finish.

"They are still in the process of obtaining funding," the attorney said. "Right now they are proceeding on their own funds because they are committed to the project."

Gloria Ford, director of marketing for BCI, said the housing market has recently recovered, making it a good time for the project. The condos will be 1,200 to 1,900 square feet, smaller than originally planned, and will be priced between the high-$300,000s and mid-$600,000s.

"We're very excited to be moving the project forward," she said. "We've had a lot of positive interest in it. We feel it's a good time to introduce it into the market."

Ford could not say what work is being done now. She said the construction timeline is still being worked out but it will speed up once warm weather arrives.

Town Attorney Michael Magguilli said the lawsuit accuses the town of responding solely to public complaints without following the law. He said the town did both.

"We did in fact listen to the neighbors, and we are glad to see they are finally moving forward on this project," he said. "That was our goal in the first place."